Personal Loan Calculator

Use this calculator to estimate the monthly payment, total interest, and total cost of a personal loan. It helps you compare borrowing options before taking on debt, using the loan amount, interest rate, term, and any upfront fee.

What this calculator does

The personal loan calculator estimates the cost of an instalment loan with fixed monthly payments.

It uses:

• loan amount
• annual interest rate
• loan term in years
• origination fee

The result shows the monthly payment, the total interest over the full term, and the estimated total cost including fees. These figures are for planning purposes only and may differ from lender quotes.

How to use the personal loan calculator

Enter the amount you plan to borrow, the annual interest rate, the loan term, and any origination fee. Use the advertised APR or interest rate from the lender if you have one.

Compare different terms to see how a longer loan lowers the monthly payment but can increase total interest. For more detail on payment schedules, use the Amortization Calculator.

Personal Loan Formula

Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1]

Where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.

Example calculation

If:

• Loan amount = 20,000
• Annual interest rate = 8%
• Loan term = 5 years
• Origination fee = 200

Then:

Monthly payment = 20,000 x [0.006667(1.006667)^60] / [(1.006667)^60 - 1]

The estimated monthly payment is about 405.53, total interest is about 4,332, and total cost including the fee is about 24,532.

What is a personal loan?

A personal loan is borrowed money repaid through fixed instalments over a set term. It is often used for home repairs, medical bills, large purchases, or debt consolidation.

Unlike credit cards, personal loans usually have a fixed repayment schedule, making them easier to budget.

Interpreting your result

The monthly payment helps you judge affordability, while total interest shows the real cost of borrowing. A lower monthly payment is not always cheaper if the loan term is much longer.

When to use this calculator

Use this calculator when you want to:

• compare personal loan offers
• estimate monthly repayments
• understand total interest cost
• test different loan terms

Common mistakes

Common mistakes include:

• comparing only monthly payments
• ignoring origination fees
• using the wrong loan term
• treating estimates as lender approval

FAQs

Does this calculator include fees?

Yes, it includes an optional origination fee in the total cost.

What happens if the interest rate is zero?

The payment is calculated by dividing the loan amount evenly across the term.

Is this the same as APR?

Not exactly. APR may include broader lender charges and disclosure rules.

Is this financial advice?

No. This calculator provides estimates for planning purposes only.